Yields are starting to jump all over the place and are clearing key resistance levels in many different types of bonds! Below the Yield on the 10-year note looks to have made an inverse “Head & Shoulders” pattern!
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This pattern is very “bullish per yields” moving higher at (2) & (3)! The breakdown in Muni bonds (see post here) increases the odds that this pattern will influence bond prices for a while longer.
Back in 2007/08 when bond prices in Muni’s (VKQ), Investment Grade (LQD), High Yield (JNK) starting breaking down, just happened to be the early signs that equities had challenging times ahead. Different this time around? Keep a close eye on all the bonds and the Dollar too!
II2…I did a post last week, reflecting that several of the major stock markets were at potential double tops, at highs.
See this link…they looked like double tops to me then and more so now!
https://www.kimblechartingsolutions.com/2010/11/should-investors-sweat-resistance-and-lack-of-fear/
Thank you for this question.
Tony…I might have set too tight of a stop! I liked TLT due to have far it had declined, hitting fib 61% support. Also thought that if stocks and commodites ran into selling pressure, TLT could become a flight to quality, as it did in 2007/08.
Hi Chris,
What are your thoughts on TLT at this point?
Thanks!
Chris,
Off-topic question. What’s needed to confirm the double top in many indexes ? All SPY, IWM, QQQQ show a double top formation, with highs in April and Nov. This is eerily similar to the double top in 2007 Jul and Oct. I am new to technical analysis – so any advice is greatly appreciated. Thanks.